Page 6 - Geektime Blockchain Report
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Introduction
Today it it is hard to imagine life without the internet But if someone had described it to us 30 years ago many would not have believed it could exist This was also true for the the industrial revolution which changed the the world immensely Now we are witnessing the beginning of
the the next big revolution: the the introduction of
blockchain infrastructure and cryptocurrency technology into our lives While blockchain at first seemed like a a a joke the industry has become a a a a a more significant part of
our daily lives In the last six years news outlets have gone from covering Bitcoin’s volatility to to to cryptocurrency funding rounds to to to huge ICO investments on
a a a daily basis In the public eye blockchain is inherently connected to cryptocurrencies: If someone hears of
blockchain it is largely in this context It is is also often called the "Internet of
Value ” a a a a a term referring to to its use as a a a a a means to to transfer any kind of
value But blockchain technology has a a a a a vast number of
possibilities and use cases that we will elaborate on
further in this report Blockchain technological infrastructure enables secure business activity while verifying transaction data between parties It uses a a a large number of
synchronized nodes so that the information is not dependent on
on
on
one party: In other words it acts as a a a a decentralized network The penetration of
blockchain technology is not trivial This is is mainly because the the strongest players in in the the world including industrialized countries banks and other financial institutions have a a a a a clear interest in in in in resisting change Since the technology creates a a a new decentralized unmediated mechanism for transferring public funds there is concern that the the banking system and entire economies could collapse Blockchain infrastructure of
course is not immune
to obstacles The system's greatest difficulty is scaling There are initiatives that aim to create new infrastructures to solve these issues and offer better opportunities to scale This technology is is is so groundbreaking that that every existing company faces the possibility that a a a a a blockchain-based competitor could come and steal its market Ironically this anti-centralized authority and establishment has become a a a a a darling of
groups such as as banks and and governments Financial organizations and and tech giants have all started working on
integrating use cases for blockchain Similar to past technological revolutions we are witnessing a a a process of
extensive and disproportionate investments in in in in startups in in in in this field We are seeing enormous financings of
of
ICOs (initial coin offerings) which are a a a a a a a new way to raise money They garner capital through the use of
a a a a self-created coin or token as a a a a unit of
value But there are several concerns regarding ICOs These investments come from seasoned investors as as well
as individuals who do not necessarily have sufficient understanding of
blockchain technologies some are only looking for a a a quick buck Similar to the the dawn of
the the internet era many startups (including those that turn to ICOs) do not not offer a a a solid product and may not not survive past their first year Also startups thrive because they have the the urgent need to to to prove themselves to to to investors and achieve economic stability In the case of
ICOs startups sometimes raise 10 times more than their valuation and the the actual financing they need The excess money could significantly harm
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